Nov032017

Argus

South Dakota's Congressional delegates trumpeted the release of a $1.51 trillion GOP tax reform plan Thursday, saying it would save most South Dakotans thousands of dollars each year while also boosting business in the state and across the country.

In statements to and calls with reporters, Rep. Kristi Noem and Sens. John Thune and Mike Rounds celebrated the proposal, which would cut taxes for corporations and lower tax burdens for low- and middle-class Americans.

“I’m proud that this bill lowers rates for everyone," Noem said. "We've focused on the low- and middle-income folks that are in South Dakota and across our country."

The bill comes with a $1.51 trillion price tag over the next decade, which Republicans said would be reduced as taxpayers and corporations reinvest their savings in purchases or business expansions, boosting the economy.

Democrats and a handful of skeptical Republicans voiced concerns about the proposal's tax cuts for businesses and wealthy Americans, arguing that it wouldn't do enough to help low- and middle-income people.

"This bill stresses more tax cuts for corporations and wealthy people than for the middle class," said Sam Parkinson, executive director of the South Dakota Democratic Party. "We think Republicans in Congress should be working with every member to find solutions."

House Republicans said they felt confident the measure would pass in that chamber later this month. The Senate plans to draft its own tax reform bill which would be combined with the House proposal in a conference committee.

"We have taken the first step with the introduction of this bill in promising that we are going to fix this," Rounds said. "I’m very happy that they’ve gotten this far on it."

Some of the changes proposed in the Republican plan:

- A consolidation of tax brackets from seven to three, with individual rates of 12, 25 and 35 percent. Earners in the highest bracket wouldn't pay more than 39.6 percent on their earnings

- Child tax credits would grow to $1,600 from $1,000. Additional $300 credits would be applicable for each parent, older family member or nonchild dependent

- Mortgage interest deductions will remain, but future purchases will be capped at $500,000

- The estate tax, imposed on estates worth more than $5 million, would be phased out over six years

- Corporate tax rates would from 35 percent to 20 percent and new companies would be able to write off new investments immediately